Nonmarketable title and encroachment

[Jeff Bridges]

Hey BP universe! I got an opportunity for a buy and hold rehab for a REO, but found out there is an encroachment claim/ issue on the property by a neighbor. Right now I'm in the process of running it by my title company to see what they find with title. The GIS maps (can't find the plat on file) show that the parcel boundaries according to tax map and the parcel boundaries map appear to be fully in the clear for the driveway, house and 2 car garage shown below. It looks like the neighbor might be delusioned about encroachment, but I know a formal survey would settle it for expense. Neighbor is not cooperating with encroachment issue so assume they won't help. Seller (bank) states that they were unable to find title company to write title insurance because of the encroachment issue but obviously are still marketing it for sale.

I am not yet under contract, but deciding on how to proceed with due diligence. If this were your situation, how would you order your due diligence to minimize expense and explore the deal and see if I could get clear title and clear up doubt on the encroachment issue? I would want title insurance. Not asking for armchair surveyers, just some friendly advice on due diligence steps, preferred order:)

Listing Agent states the property line is within 5 feet of the house. This means a couple of things:

1. The driveway and garage are not on the property at all.

2. The house is within 5 feet of the property line, so there is a setback issue.

Below looks positive to show that the boundaries are not encroached, but i realize that they are not the actual plats and final say...